Investing glossary
Plain-language definitions of the investing terms you meet in filings, in the news and in Finzer.
27 terms, all of them on this page
D
Death Cross
A death cross occurs when a short-term moving average falls below a long-term moving average, typically the 50-day below the 200-day. Learn how it works, what causes it, and how smart investors actually use it.
Debt Deflation
Debt deflation is a destructive cycle where falling prices increase the real value of debt, forcing borrowers to cut spending or sell assets. Learn how it starts, why it’s dangerous for markets, and how investors should respond.
Debt Ratio
The debt ratio measures how much of a company’s assets are financed by debt, expressed as a percentage. Learn how to calculate it, interpret safe vs risky levels, and use it in real investing decisions.
Debt-to-Equity Ratio
The debt-to-equity ratio measures how much debt a company uses relative to shareholder equity. Learn how to interpret it, when it matters, and how investors actually use it.
Default Risk
Default risk is the probability that a borrower fails to make required interest or principal payments. Learn what drives it, how investors measure it, and how to manage it in real portfolios.
Deflation
Deflation is a sustained decline in the general price level of goods and services across an economy. Learn what causes deflation, how it affects markets, and what investors should actually do when prices fall.
Deleveraging
Deleveraging is the process of reducing debt relative to assets, equity, or cash flow. Learn why it happens, how it impacts markets and companies, and how investors should respond.
Depreciation
Depreciation is the accounting method of spreading an asset’s cost over its useful life to reflect wear and tear. Learn how it affects earnings, cash flow, and how investors should interpret it.
Derivative
A derivative is a financial contract whose value is tied to the price of another asset, like a stock, bond, commodity, or index. Learn how derivatives work, why investors use them, and how to avoid the common traps.
Derivatives
Derivatives are financial contracts whose value comes from an underlying asset, rate, or index. Learn how they work, why investors and companies use them, and how to avoid costly mistakes.
Diluted Shares
Diluted shares are the total number of shares a company would have if all potential stock issuances were converted into common stock. Learn how dilution works, what causes it, and how to protect your ownership and returns.
Direct Listing
A direct listing is a way for a company to go public by letting existing shares trade on an exchange without issuing new stock or using underwriters. Learn how it works, why companies choose it, and what investors should watch for.
Discount Rate
A discount rate is the annual rate used to convert future cash flows into today’s dollars. Learn how it drives valuations, why it changes, and how investors should actually use it.
Disinflation
Disinflation is a slowdown in the rate of inflation, where prices are still rising but at a decreasing pace. Learn what causes disinflation, how it affects markets, and how investors should position portfolios.
Disposable Income
Disposable income is the amount of money households have left after paying taxes. Learn how it’s calculated, what drives it, and why investors track it closely.
Diversification
Diversification is an investment strategy that spreads capital across multiple assets to reduce portfolio risk. Learn how it works, when it helps, and how to apply it intelligently.
Dividend
A dividend is a cash or stock payment a company makes to shareholders, usually from profits, often on a quarterly basis. Learn how dividends work, why they matter, and how smart investors actually use them.
Dividend Adjustment
A dividend adjustment is a mechanical change-usually to a stock’s price or a derivative’s value-to reflect a cash dividend payment. Learn how it works, when it shows up, and how investors should actually use it.
Dividend Growth Rate
Dividend growth rate measures how fast a company’s dividend payments increase over time, usually expressed as an annual percentage. Learn how to calculate it, what drives it, and how investors use it to build durable income portfolios.
Dividend Policy
A dividend policy is a company’s formal approach to paying cash or stock dividends to shareholders, typically expressed as a payout ratio or fixed schedule. Learn how different policies affect returns, risk, and portfolio strategy.
Dividend Yield
Dividend yield shows how much a company pays in dividends each year relative to its stock price. Learn how to interpret it, what drives it, and how investors actually use it.
Dollar-Cost Averaging
Dollar-cost averaging is an investing strategy where you invest a fixed dollar amount at regular intervals, regardless of market price. Learn how it works, when it helps, and when it quietly hurts returns.
Drawdown
A drawdown is the percentage decline from a portfolio or asset’s peak to its subsequent low. Learn how to measure it, what causes it, and how smart investors manage through it.
Dry Powder
Dry powder is cash or near-cash capital deliberately held back to deploy quickly when prices fall or opportunities emerge. Learn how investors use it, when it matters most, and how to manage it without hurting returns.
Due Diligence
Due diligence is the structured process of verifying facts, risks, and assumptions before making an investment or business decision. Learn how investors actually do it, what triggers it, and how to avoid costly mistakes.
DuPont Analysis
DuPont Analysis breaks return on equity into profit margin, asset efficiency, and leverage. Learn how to use it to spot high-quality returns versus risky financial engineering.
Duration
Duration measures how sensitive a bond’s price is to changes in interest rates, expressed in years. Learn how it works, why it matters for portfolios, and how to actually use it.